Virginia’s House of Delegates and State Senate passed a comprehensive, long-term transportation bill Feb. 23. Now, the state legislature awaits Gov. Bob McDonnell’s (R-Va.) signature.
The bill will be covered by a few different sources according to the Washington Post, which reports that McDonnell convinced Democrats to move $200 million of general funds toward this bill. Federal online sales tax money and an additional 0.3 percent on sales tax, as well as a new taxing authority from the most congested parts of the state, will provide the rest of the funding needed to meet Virginia’s increased transportation needs, McDonnell says.
If McDonnell signs the bill, which he is expected to, a 17.5-cents-per-gallon gas tax would be eliminated and a 3.5 percent wholesale tax would be imposed in the state.
“With this bill, gas prices will be reduced, and we will reduce our historic reliance on the gas tax which is in a long-term decline,” McDonnell says. “Today we have stated unequivocally that transportation is a core function of government, by moving $200 million in future general fund dollars, and another $200 million from anticipated changes to federal law, to transportation.”
